TeamTalk profit down 17 percent

TeamTalk’s profitability ensures reinvestment into infrastructure remains on track: Profit after tax $4.4m, down 17 percent from $5.3m last year. Revenue was up marginally from $34.0m to $34.2m and EBITDA up 4.7 percent to $12.1m.

CEO Andrew Miller said the result showed the company was delivering on its plan. “Over the last 12 months we have grown EBIT, sold the remaining 30 percent in Farmside, secured a new banking partnership with BNZ and continued to reduce debt.”

(Vodafone acquired a 70 percent stake in Farmside for $10.0m in early 2017 and the remaining 30 percent in May 2018 for $3.0m)

TeamTalk said it is in the early stages of a comprehensive investment phase to grow and underpin its existing business and is on track to have the majority of these programmes completed by June 2020.

The company said: “Of particular note, we have now commenced the rollout of our new digital radio network across New Zealand. We have completed the rollout of the pilot area across Canterbury, on time and on budget, and the first customer will be on the network within the next two weeks. We will have 50% of the roll-out completed before Christmas 2018; and by June 2019, we will have completed the nationwide rollout positioning TeamTalk with the only national digital radio network in New Zealand.”

Teamtalk said the other area of investment due to be completed by June 2020 was around its wired networks that provide broadband connectivity and ancillary related services to a range of wholesale customers and end users in the Wellington and Auckland CBDs.

“Although the catalyst for investment has been the closing of the trolley bus infrastructure in Wellington where we need to transition 32km of our 250km there underground, we are taking the opportunity to also modernise and upgrade the electronics to provide a modern and robust solution which will be a leader in its sector,” it said.

It has signed a 10 + 10-year agreement with Powerco for the exclusive use of its ducts in Wellington.

TeamTalk says it will provide an update on earnings guidance at the AGM in October.

Copyright © 2018 IDG Communications, Inc.

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